Cash-Out BasicsQuestion 2
How Does a Cash-Out Refinance Work for Houston Landlords?
Apply with a lender, get an appraisal to determine current value, borrow up to 70–75% LTV, and receive the difference between your new loan and old balance as cash.
The cash-out refinance process follows the same steps as a regular refinance with the key difference being that you borrow more than you currently owe.
- Step 1 — Apply: Contact DSCR, conventional, or portfolio lenders. Provide property details and financial information.
- Step 2 — Appraisal: The lender orders an appraisal to determine your Houston property's current market value.
- Step 3 — Determine loan amount: Most lenders allow up to 70%–75% LTV on investment property cash-outs. Multiply your appraised value by the max LTV to find your maximum new loan amount.
- Step 4 — Calculate cash proceeds: New loan amount minus existing mortgage balance minus closing costs = your cash at closing.
- Step 5 — Close: Sign documents. Old loan is paid off. Cash proceeds are wired or sent by check, typically within 3 business days.
Bottom Line
The entire process takes 30–45 days. For Houston BRRRR investors, having your cash-out lender lined up before starting a project keeps the cycle moving efficiently.